Federal Bank to acquire stake in Equirus Capital

The Board of Directors of Federal Bank has approved acquiring a strategic minority stake of 26% in Equirus Capital Pvt. Ltd. (ECPL) subject to statutory and regulatory approvals and satisfactory completion of financial and legal due diligence.

The Investment rationale has been driven by the need to increase the product offerings to a spectrum of wholesale clients by offering comprehensive financial solutions for Debt & Equity Capital Markets, Structured Finance, Capital Market products and Advisory. The association can also aid Federal Bank in offering a host of products including wealth management services to HNI and the NRI diaspora. The strategic tie-up would help shore up non interest earnings for the Bankwhile creating additional revenue streams with identified clients.

Commenting on the investment,Ganesh Sankaran, Executive Director, Federal Bank said, “This is a landmark deal that demonstrates the Bank’s wider intent to expand the horizon of its offerings to serve its wholesale and retail customer base. This partnership will serve as a natural complement to our strong origination capabilities and deep client relationships in addition to positioning us as a Universal Financial Services Provider.With a shift in client preferences, our foray into Investment Banking will help us participate in opportunities and instruments beyond traditional banking products. With our dominant position in the NR space and a strong customer base of over seven million, this will also help us provide superior wealth management offerings to our consumer bank clients”

On the occasion, Ajay Garg, Managing Director, Equirus Capital said,“Investment by Federal Bank is a strong endorsement of our team’s entrepreneurial venture now on the path to becoming an institution. With this relationship, we intend to expand our product offerings in debt, and leverage on Federal Bank’s extensive network and client base to enhance each of our business lines”